Which of the following is NOT one of the rights that can attach to shares?

Prepare for the Professional Legal Training Course Company Law Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for effective learning. Get ready for your exam!

The right to indefinite holding is not typically considered a formal right that can attach to shares. In corporate law, the rights associated with shares are generally outlined in the company's articles of incorporation or bylaws and often include specific rights like the right to vote, the right of first refusal, and the right to participate in profits.

The right to vote enables shareholders to have a say in the governance of the corporation, including decisions such as electing the board of directors and approving significant corporate actions. The right of first refusal allows existing shareholders to be offered the chance to buy additional shares before they are offered to outside buyers, protecting their ownership interests. The right to participate in profits, often manifested through dividends, ensures that shareholders can receive a portion of the company's earnings.

In contrast, the concept of indefinite holding implies a shareholder could hold shares without any conditions or limitations. In reality, shares can generally be bought and sold, and ownership may change based on market conditions or corporate actions, meaning that indefinite holding is not a formal, enforceable right associated with share ownership.

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